International payments

International payment terms

Collection – Phương thức nhờ thu
Remittance – Phương thức chuyển tiền
Cash against documents (CAD) –
Phương thức giao chứng từ trả tiền
Documentary credit – Phương thức tín
dụng chứng từ

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 International payment terms
Open account – Phương thức ghi
sổ
Counter trade – Thanh toán trong
buôn bán đối lưu
Tradecard

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 Collection
Collection is instructed by the
Uniform Rules for Collection –
ICC Pub. No 522-1995 Revision, to
be valid from 01 January 1996.

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 Collection
The seller, after completing delivery to the
buyer, will make a bill of exchange to ask
for payment from the buyer through a bank.
Related parties in collection:
Principal (người ủy nhiệm thu): is the
exporter or seller who delegates the bank to
take payment.
Collecting bank (ngân hàng thu hộ): is the
seller’s bank which assists the seller in
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taking payment from the buyer.
 Collection
Presenting bank (ngân hàng xuất trình):
is the buyer’s bank which presents
documents to the buyer. It is usual the
agent of collecting bank.
Drawee (người trả tiền): is the party
who receives the collecting documents.
Drawee is the importer or buyer.

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 Collection
Bill of exchange (Draft)
Definition: Bill of exchange is the
unconditional order for payment issued
by the exporter (seller) to the importer
(buyer) to make payment for a specific
amount at the nominated bank in the
definite period of time.

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 Collection
Related parties in issuing and payment
of bill of exchange:
Drawer (người ký phát hối phiếu): the
seller, exporter
Drawee (người trả tiền hối phiếu): the
buyer, importer or the third party
nominated by the buyer or importer.
Third party is usual a bank, it may be
confirming bank or issuing bank.
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 Collection
Beneficiary (người thụ hưởng): the issuer
of Bill of exchange or the party
nominated by the issuer.
Way to create Bill of Exchange

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 Collection
Bill of Exchange for Collection
Bill of Exchange
No:..(1).. Place..(3).., date..(4)..
For:..(2)..
At..(5)..sight of this FIRST of Exchange
(SECOND of the same tenor and date
being unpaid) pay to the order of..(6)..the
sum of ..(7)..
To:..(8).. (Authorized signature)(9)
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 Collection
(1) No:..Number of Bill of Exchange
(2) For:..Currency and total amount in
number
(3) Place of issuing draft, usually name
of city and country of the exporter
(4) Date of issuing draft, usually
delivery date (date of B/L) or after
(5) Payment date
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 Collection
(6) Name of Collecting bank
(7) Currency and total amount in words
(it must be the same as total amount in
number in (2))
(8) Name and address of the importer
(drawee)
(9) Signature of drawer (legal
representative of the seller/drawer)
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 Collection
Bill of Exchange for Documentary
Credit
Bill of Exchange
No:..(1).. Place..(3).., date..(4)..
For:..(2)..
At..(5)..sight of this FIRST of Exchange
(SECOND of the same tenor and date being
unpaid) pay to the order of..(6)..the sum of ..
(7)..
Value received as per our Invoice(s) No..(8)
13 dated ..(9)
 Collection
Drawn under:…(10) confirmed/irrevocable/
without recourse L/C No…(11) dated/wired..
(12)..
To: …(13)… Authorized signature (14)

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 Collection
(1) No:..Number of Bill of Exchange
(2) For:..Currency and total amount in
number
(3) Place of issuing draft, usually name
of city and country of the exporter
(4) Date of issuing draft, usually
delivery date (date of B/L) or after
(5) Payment date
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 Collection
(6) Name of Collecting bank
(7) Currency and total amount in
words (it must be the same as total
amount in number in (2))
(8) No. of Commercial Invoice
(9) Date of Commercial Invoice
(usually date of B/L)
(10) Name of Issuing bank
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 Collection
(11) No. of L/C
(12) Issued date of L/C
(13) Name of Issuing bank or
Confirming bank (if using Confirmed
Irrevocable L/C)
(14) Signature of issuer ((legal
representative of the seller/drawer)

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 Collection
Types of bill of exchange
Based on the period of time of payment:
Sight bill: the buyer must make payment
to the seller upon seeing the bill of
exchange.
Usance bill: the buyer makes payment in
a specific period of time from the time of
issuing or seeing the draft.

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 Collection
Based on accompanying documents:
Clean bill: payment for this type of draft is
not associated to whether the consignment
documents are submitted.
Documentary bill: documents of delivered
goods must be accompanied with the bill of
exchange. The bank will deliver documents
against payment (D/P) or deliver documents
against acceptance (D/A) to the buyer.
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 Collection
Based on the transferability of the draft:
Nominal bill (hối phiếu đích danh): name of
beneficiary is presented on the bill of
exchange. It is not transferred by
endorsement.
Bearer bill (hối phiếu vô danh): (or no-
nominal bill) name of beneficiary is not
presented on the bill of exchange but “pay to
bearer” or in blank. To this type of draft,
anyone who holds the draft will be
20 beneficiary, endorsement is not necessary.
 Collection
Order bill (hối phiếu theo lệnh):
presenting clearly “pay to the order
of…” (that means to pay to the order of
the beneficiary). To transfer this bill, the
beneficiary must endorse. This type of
bill of exchange is very popular in
international payment.

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 Collection
Based on the party who issues the
draft:
Commercial bill of exchange: the
exporter issues the draft.
Bank bill of exchange: issued by the
bank for remitting money between
banks.

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 Collection
Endorsement:
Blank endorsement: sign only
Order endorsement or special endorsement:
ex. Pay to the order John Brown…
Restrictive endorsement: ex. Pay to John
Brown only.
Without recourse endorsement
Conditional endorsement: ex. Pay to my
daughter Mary Smith, when she finishes
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college.
 Collection
Discount of bill of exchange:
Banks buy bills of exchange before due date
from exporters
Value of bill of exchange which exporters
obtain from the banks is always less than par
value of bill of exchange
To take discount of draft, it must be
accepted to payment by signing on the draft
by drawee
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 Collection
In discount of draft, beneficiary must
endorse to transfer draft to the bank
Guarantee of bill of exchange:
The guarantee of the third party in
payment to beneficiary at due date
Guarantor is neither drawer nor drawee
but a highly reputable bank

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 Collection
Bill of exchange is guaranteed by the word
“Aval” on front or back site of the bill of
exchange with signature of guarantor
Guarantee without signature on bill of
exchange
Protest for non-payment
Beneficiary may protest for non-payment to
the court
Protest is made within 2 working days from
26 the due date
 Collection
Two types of collection:
Clean collection: the seller asks for
assistance from the bank to collect the sum
of money presented on the draft from the
buyer without any condition.
This type of collection does not ensure the
right of the seller because the payment
entirely depends on the buyer, the time of
payment is slow and the bank is the
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intermediate party only.
 Collection
Documentary collection: the seller, after
completing delivery of the goods, makes a
set of documents for collection (including
delivery documents and draft) and ask the
bank to take payment from the buyer of
the sum presented on the draft. If that the
buyer makes payment or accepts payment,
the bank will give delivery documents to
the buyer to unload the goods.
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 Collection
Documents against payment (D/P): is
used in the case of immediate payment.
Documents against acceptance (D/A):
is used in the case of deferred payment.

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 Remittance
Remittance is a type of international
payment in which the customer (the
buyer, importer…) asks the bank to
remit a specific sum of money to the
beneficiary (the seller, exporter…) in a
specific place. The bank must perform
this operation through its agent which is
located in the country of the beneficiary.
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 Remittance
Related parties in remittance:
Remitter or payer is the party which
delegates the representative bank to make
remittance.
The bank implementing operation is in the
country of the remitter, it is also called
remitting bank.
The agent of remitting bank, it is usually in
the country of the beneficiary.
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 Remittance
Beneficiary: is the seller or anyone
nominated by the remitter.
Types of remittance:
Telegraphic transfers (T/T – điện hối):
the bank which implements operation
gives order of remittance by telegraphy
to its agent abroad to make payment to
the beneficiary.
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 Remittance
Mail transfers (M/T – thư hối): the
bank which implements operation gives
the payment order by mail to its agent
abroad to make payment to the
beneficiary.
T/T is faster than M/T. However,
charges for T/T are much higher than
M/T.
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 Remittance
Based on the point of payment, there are
3 types of remittance:
Prepaid remittance
Immediate remittance
Deferred remittance
Prepaid remittance is used when the
importer agrees to give credits to the
exporter to perform delivery of the
contract goods.
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 Remittance
Immediate remittance is used when the
importer makes payment immediately
upon taking delivery from the exporter.
Deferred remittance is used when the
exporter gives credits to the importer,
after taking delivery for x days, the
importer will ask the bank to make
remittance to the exporter.
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 Cash against documents (CAD)
The importer asks the bank to make a
trust account for the purpose of making
payment to the exporter after it presents
documents conforming with
requirements in the contract.
The exporter will present goods
documents to the bank after completing
delivery to the buyer.
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 Cash against documents (CAD)
After signing the commercial contract,
the importer will ask the bank to provide
service in CAD. A memorandum
between the importer and the bank will
be made with the following content:
Means of payment: CAD
Pledged amount: at 100% of the trade
Required documents
Commission
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 Cash against documents (CAD)
The bank will inform the seller in trust
account after the importer puts enough
money to this account at the bank.
After checking information, if accepted,
the exporter will deliver the goods through
the carrier to the importer.
The exporter will present required
documents to the bank after completing
delivery of goods.
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 Cash against documents (CAD)
The bank checks documents upon
memorandum and makes payment to
the exporter.
The bank sends documents to the
importer.

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 Cash against documents (CAD)
Documents in CAD:
Letter of confirmation (confirming
delivery to the importer)
Copy of bill of lading and commercial
invoice with confirmation of the
representative of importer in the country
of the exporter
Original bill of lading (3 originals)

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 Cash against documents (CAD)
Commercial invoice
Certificate of quantity/weight
Certificate of quality
Advantages:
The exporter can take payment
immediately upon delivery
Documents for payment are simple, the
bank checks types of documents only, the
content of documents is not carefully
considered as those in documentary credits
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 Documentary credits
Documentary credit is the agreement in
which the issuing bank, upon the applicant’s
request, commits to pay a specific sum of
money to the third party (the beneficiary of
the letter of credit) or to accept the bill of
exchange issued by the third party within
that sum of money upon receiving the full
set of documents conforming with
requirements in the letter of credit.
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 Documentary credits
Documentary credit is one of the most
popular international payment terms.
The content of documentary credits is
in conformity with Uniform Customs
and Practice for documentary credits
issued by International Chamber of
Commerce (ICC) in Paris.

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 Documentary credits
The latest revision is ICC 600 issued in
2007.
In documentary credits, the bank is not
only the intermediate party but it is also the
representative for the importer in making
payment to the exporter. The exporter is
ensured to get payment corresponding to
the delivered goods, while the importer is
ensured to take the sound goods
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corresponding to the payment.
 Documentary credits
With those advantages, documentary
credit is the most effective payment
term for both exporter and importer.

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 Documentary credits
Parties in documentary credits:
Applicant
Issuing bank or opening bank
Beneficiary
Advising bank
Confirming bank*
Paying bank*
Nominated bank*
(*May participate in documentary credits in
46 certain circumstances)
 Documentary credits
Applicant: is the importer, buyer. Upon
applicant’s request, letter of credit is issued by
the issuing bank.
Issuing bank (opening bank): issues letter of
credit upon the applicant’s request. It is the
representative bank for the importer. It is
usually the choice of the importer and exporter
and presented in the contract. If there is not
advanced agreement, the importer has the right
47 to choose the issuing bank.
 Documentary credits
The rights and obligations of the
issuing bank:
Upon the applicant’s request, issuing
letter of credit and sending the original
of letter of credit to the exporter. This
operation is usually through the agent of
issuing bank in the country that the
exporter is located.
Making amendments to L/C upon the
48 requests of applicant or exporter.
 Documentary credits
Checking payment documents from the
exporter; in case it is in conformity with
requirements in L/C, accepting to make
payment to the exporter; otherwise,
refusing payment. The issuing bank is
responsible for checking the conformity of
documents with L/C but the legality of the
documents. Disputes (if any) related to
inside aspects of documents are for the
agreement between the importer and
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exporter.
 Documentary credits
The issuing bank has no obligation
in force majeure such as: war, strike,
flood, fire, earthquake…
The issuing bank must be
responsible for all of its mistakes. It
has the right to take the service
charges of 0.125 to 0.5% of the
value of letter of credit.
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 Documentary credits
Beneficiary: the exporter, seller or anyone
nominated by the exporter.
Advising bank: the bank advises the letter
of credit upon the request of the issuing
bank. It is usually the agent of the issuing
bank in the country which the exporter is
located. The rights and obligations of
advising bank are as following:

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 Documentary credits
Upon receiving cable in letter of credit of
the issuing bank, the advising bank will
transmit received content of letter of credit
to the exporter in written form.
Advising bank is obligated to transmit the
cable only, it does not have responsibility to
translate terminology into local language. It
must be responsible for any error made by
itself in the content of letter of credit which
is requested to transmit.
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 Documentary credits
…It is usually for advising bank to put
the following sentence at the end of
letter of credit: “Please, note that we
assume no responsibility for any error or
omission in the transmission and
translation of the cable”.

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 Documentary credits
Upon receiving payment documents from
the exporter, the advising bank must transmit
the full set of submitted documents to the
issuing bank
Confirming bank: the bank which confirms
the letter of credit upon delegation or
request of the issuing bank. Confirming
bank, together with issuing bank, …

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 Documentary credits
…ensures to make payment to the
exporter in case the issuing bank is
unable to settle the payment.
Confirming bank may be the advising
bank or another bank upon request of
the exporter. It is usually a big bank
with high repute in international credit
and finance market.
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 Documentary credits
Paying bank: it may be the issuing bank or
another bank nominated by the issuing bank
to make payment to the exporter. If
nominated place of payment is in the
country of the exporter, paying bank is the
advising bank. Responsibility of paying
bank is similar to responsibility of the
issuing bank in receiving payment
documents from the exporter.
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 Documentary credits
Nominated bank: the bank which letter
of credit has value in negotiation or any
bank if letter of credit notes that it
might be negotiated in any bank.

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 Documentary credits
Letter of credit (L/C)
According to Article 2, UCP 600, letter
of credit is any agreement which is
irrevocable and becomes the
commitment of the issuing bank in
payment upon presenting valid
documents.

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 Documentary credits
Letter of credit is a written letter issued
by a bank upon the request of the
importer (applicant) to commit
payment to the exporter (beneficiary) a
specific sum of money in specific
period of time if beneficiary presents
enough valid documents.

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 Documentary credits
L/C is the important legal document in
documentary credits. L/C operates based
on two rules:
Independent: L/C is issued based on the
sales contract, importer uses content and
requirements in the sales contract to ask the
bank to issue L/C. However, L/C, after
being issued, is independent to the sales
contract. The issuing bank operates payment
based on L/C only.
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 Documentary credits
Conformable: the bank makes payment
only when documents are totally
conformable with the L/C. The bank
will check very carefully (word by
word) documents presented by the
exporter in order to ensure that there is
not any discrepancy.

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 Documentary credits
Example: Milton Co. Ltd (USA) buys
coffee from Vietnam. Milton requests a
bank in USA to issue L/C. One of required
documents is Certificate of Quality issued
by Experts. Delivery is completed and the
issuing bank makes payment to the
exporter. When the goods reach the port of
destination, coffee is in low quality…

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 Documentary credits
Certificate of Quality was issued with
signature of an expert. The importer
does not accept to make payment.
What happens to the issuing bank in
this case?

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 Documentary credits
Content of L/C:
Issuing bank (after words “Received from)
No. of L/C, place and date of issuing L/C
Form of L/C
Beneficiary or in favour of …
Amount
Expiry date, date of payment and date of
shipment or delivery

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 Documentary credits
Description of goods
Terms in transport and shipment
Required documents
Commitment of the issuing bank
Other special terms
Sign of the issuing bank

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 Documentary credits
Forms of letter of credit
Revocable letter of credit
Irrevocable letter of credit (UCP 600: only
irrevocable L/C)
Confirmed irrevocable letter of credit
Irrevocable without recourse letter of credit
Transferable letter of credit
Back to back letter of credit
Revolving letter of credit

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 Documentary credits
Stand-by letter of credit
Reciprocal letter of credit
Red clause letter of credit
Other special forms of letter of credit
Payment credits
Acceptance credits
Negotiable credits
Collection credits
TTR credits
67 Non-TTR credits
 Documentary credits
Revocable letter of credit
 This form of L/C is the one that the
issuing bank may amend, supplement
or cancel anytime without informing to
the beneficiary. It is rarely used in
international payment because it is not
a commitment for payment.

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 Documentary credits
Irrevocable letter of credit
 This form of L/C is the one that the
issuing bank, after issuing and advising
to the exporter, can not amend,
complement or cancel during the period
of validity unless there is an agreement
between related parties.

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 Documentary credits
 This form of L/C is the commitment of
the issuing bank to the beneficiary upon
submitting appropriate documents.
Irrevocable L/C is most popularly used
in international payment because of its
commitment to the right of the
exporter.

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 Documentary credits
Confirmed irrevocable letter of credit
This is irrevocable L/C with the
commitment of a bank at higher repute to
make payment to the beneficiary. When the
exporter does not trust in the solvency of
the issuing bank, it requests another bank to
ensure the solvency of the issuing bank.
This bank is called as confirming bank.

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 Documentary credits
The exporter issues draft to ask payment
from the issuing bank but transmitting
draft directly to the confirming bank.
Payment to the exporter depends on the
agreement between issuing bank and
confirming bank. Obligations of
confirming bank is similar to those of
issuing bank.
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 Documentary credits
Issuing bank must pay charges to
confirming bank and make full cash
cover. The rate of charges is usually
very high (up to 1% of the value of
L/C). The full cash cover is sometimes
up to 100% of the value of L/C.
This form of L/C gives the best
guarantee to the right of the exporter.
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 Documentary credits
Irrevocable without recourse letter of credit
With this form of L/C, the issuing bank,
after making payment to the exporter, has
no right to ask reimbursement from the
exporter in any circumstances.
The exporter must present the phrase
“without recourse to drawer” in the draft.
The same phrase is also mentioned in L/C.

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 Documentary credits
This form of L/C is very popular in
international payment.

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 Documentary credits
Transferable letter of credit
This is irrevocable L/C.
The first beneficiary has the right to
transfer a part or total amount of L/C to
one or more parties.
However, the only transfer is performed.
Charges in transfer are incurred by the
first beneficiary.
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 Documentary credits
Back to back letter of credit
This form of L/C is issued based on
another L/C.
The exporter, after receiving master L/C
from the importer, makes a request to the
bank to issue another L/C based on
master L/C to the supplier.
The later is called back to back L/C.
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 Documentary credits
This form of L/C is usually used in the
trade between the buyer and seller
implemented through intermediate
party.

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 Documentary credits
Revolving letter of credit
It is an irrevocable L/C.
When the L/C is in expiry, it
automatically becomes valid.
The L/C will expire when the contract is
completely implemented.
It is used in the case that the buyer and
seller have frequent sale transactions and
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no changes in applicant and beneficiary.
 Documentary credits
Stand – by letter of credit
To this form of L/C, the issuing bank
commits to the beneficiary to make
payment if it presents evidence in non-
performance of related party to the
agreed obligations.
This form of L/C is usually used to
force the seller’s obligation in delivery.
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 Documentary credits
The value of Stand – by L/C is around 2-
15% of the value of the commercial
contract.
In case the seller does not complete its
obligations agreed, the buyer is the
beneficiary of the Stand-by L/C. The
buyer must present the bank Certificate of
non-performance or Statement of default.

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 Documentary credits
Reciprocal letter of credit
This L/C becomes valid when another
L/C is issued. When the exporter
receives a L/C from the importer, the
exporter issues another L/C to the
importer.
This form of L/C is usually for counter
trade – transaction.
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 Documentary credits
Red clause letter of credit
This is the delegation of issuing bank to
discount bank to pay in advance a specific
amount to beneficiary for the purpose of
supporting the exporter in delivery.
With this form of L/C, the exporter has
the right to request a specific payment
before delivering the goods.
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 Documentary credits
Amendment L/C
Related parties (the importer or
exporter or the bank) make
amendments, supplements or
cancelation of a part of issued L/C.
The importer makes amendment in case
terms in issued L/C are not accurate.

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 Documentary credits
The exporter requests for amendment
when terms in issued L/C influence to
the its right.

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 Open account
The seller open an account (or using a
notebook) to note credit to the buyer after
completing delivery.
The buyer will make payment to the seller
in the agreed period of time.
This is a simple payment term. Related
parties are the buyer and seller.
This payment term is in favour of the buyer.

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 Open account
It is used in following cases:
Payment for domestic trade
Payment for goods consigned abroad
Payment for charges in services

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 Counter trade
Counter trade is the exchange of goods
in international trade.
Two or more parties exchange their
goods to take other goods.
Two types in counter trade:
Barter
Buy - back

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 Counter trade
Barter: exchange goods to take goods,
not use money in trade.
Buy – back: the seller provides
machinery, equipment to the buyer; the
buyer uses them to make products and
then delivers to the seller.

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 In cash
The buyer makes payment in cash to
the seller after the seller delivers the
goods or accepts the order.
This payment term is not popularly
used in international payment
nowadays because of high risks and
low effectiveness.

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 Tradecard
Tradecard is an organization whose
headquarters is located in New York, USA.
It has branches in Hong Kong, Belgium,
Colombia, Japan, Taiwan, China, Korea, etc.
Tradecard creates global supply chains. It
provides services such as payment, logistics,
finance, inspection, etc. More information is
available at www.tradecard.com.

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 Tradecard
Tradecard operates in over 50
countries with more than 4,000
members, 150 suppliers providing
services to 30,000 organizations and
individuals all over the world.
To get services from Tradecard,
organizations or individuals need to
register to be members.
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 Tradecard
In payment, Tradecard is responsible
for connecting the buyer and the seller
and ensures payment to the seller (upon
delivery at agreed terms) through large
credit organizations in the world.
There are 11 steps in payment process
in Tradecard

93
 Tradecard
Step 1: the buyer creates Purchase order
and sends to Tradecard
Step 2: Tradecard sends Purchase order
to the seller (the seller may select Early
Payment Program or Export Financing)
Step 3: the seller sends Commercial
invoice and/or Packaging list to
Tradecard
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 Tradecard
Step 4: representative of the buyer or third
independent party checks discrepancy to
Purchase order and/or issues Inspection
certificate to Tradecard
Step 5: logistics service provider issues
Proof of delivery to Tradecard
Step 6: Tradecard issues Electronic
compliance (document) in compliance of
the seller’s documents and buyer’s given
95 information.
 Tradecard
Step 7: Tradecard makes discrepancy
resolution and payment decision
Step 8: Tradecard determines Value
date and schedules Fund transfer
Step 9: the buyer sends Goods Receipt
in compliance with agreement to
Tradecard

96
 Tradecard
Step 10: Tradecard issues Electronic
Compliance in comparing payment
with receipt and manages the
adjustments between the seller and
buyer
Step 11: the buyer finishes payment to
Tradecard

97
 Tradecard
Advantages of Tradecard in comparing
with documentary credit
Saving costs and time
The importer is not required to make
pledged amount
The importer saves charges in issuing L/C
Two related parties adjust discrepancies by
themselves without assistance of the bank
(save charges of adjustment)
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 Tradecard
Saving costs for middle party upon
using logistics services and inspection
from Tradecard
Export financing promptly
Saving costs and time in issuing
payment documents
Fast payment

99
 Tradecard
Payment assurance
Finance situations of two related parties
are informed to Tradecard, therefore,
Tradecard ensures payment
Tradecard provides payment protection
to the seller
Tradecard provides Logistics and
Inspection
100
 Tradecard
Low risk
All information related to sales
agreement and delivery is managed by
Tradecard, therefore, payment is
ensured
Tradecard gives payment assurance to
the exporter

101
 Regulations and rules applied in
international payment
1. Uniform Customs and Practice for
Documentary Credits (UCP)
2. The Uniform Rules for Collection, ICC
Pub No 522, 1995 Revision (URC 522)
3. The Uniform Rules for Bank-to-Bank
Reimbursement under Documentary
Credit, ICC Pub No 525, 1995
Revision (URR 525)
102
 Regulations and rules applied in
international payment
4. International Standby Practices (ISP 98)
5. International Standard Banking Practice
for the examination of documents under
documentary credits (ISBP)
6. The completion of the UCP supplement
for electronic presentation (eUCP 1.0)

103
 Uniform Customs and Practice for
Documentary Credits (UCP)
The first UCP (UCP 500) was issued in
1993 with 49 clauses and became valid
from 1st January 1994.
The Uniform Customs and practice for
Documentary credits, 2006 Revision,
ICC Publication No 600 (UCP, 2006
Rev, ICC 600) was issued in 2006.

104
 Uniform Customs and Practice for
Documentary Credits (UCP)
UCP 600 includes 39 articles:
Article 1: Application of UCP
Article 2: Definitions
Article 3: Interpretations
Article 4: Credits v. and Contracts
Article 5: Documents v. Goods, Services
or Performance
Article 6: Availability, Expiry Date and
105 Place for Presentation
 Uniform Customs and Practice for
Documentary Credits (UCP)
Article 7: Issuing Bank Undertaking
Article 8: Confirming Bank Undertaking
Article 9: Advising of Credits and
Amendments
Article 10: Amendments
Article 11: Teletransmitted and Pre-
advised Credits and Amendments

106
 Uniform Customs and Practice for
Documentary Credits (UCP)
Article 12: Nomination
Article 13: Bank – to – Bank
Reimbursement Arrangements
Article 14: Standards for Examination of
Documents
Article 15: Complying Presentation
Article 16: Discrepant Documents,
Waiver and Notice
107
 Uniform Customs and Practice for
Documentary Credits (UCP)
Article 17: Original Documents and Copies
Article 18: Commercial Invoice
Article 19: Transport Document Covering
at Least Two Different Modes of Transport
Article 20: Bill of Lading
Article 21: Non-negotiable Sea Waybill
Article 22: Charter Party Bill of Lading

108
 Uniform Customs and Practice for
Documentary Credits (UCP)
Article 23: Air Transport Document
Article 24: Road, Rail and Inland
waterway Transport Documents
Article 25: Courier Receipt, Post Receipt
or Certificate of Posting
Article 26: “On deck”, “Shipper’s Load
and Count”, “Said by Shipper to contain”
and Charges additional to Freight
109
 Uniform Customs and Practice for
Documentary Credits (UCP)
Article 27: Clean Transport Document
Article 28: Insurance Document and
Coverage
Article 29: Extension of Expiry date or
Last day of Presentation
Article 30: Tolerance in Credit amount,
Quantity and Unit prices

110
 Uniform Customs and Practice for
Documentary Credits (UCP)
Article 31: Partial Drawings or Shipments
Article 32: Instalment Drawings or
Shipments
Article 33: Hours of Presentation
Article 34: Disclaimer on Effectiveness
of Documents
Article 35: Disclaimer on Transmission
and Translation
111
 Uniform Customs and Practice for
Documentary Credits (UCP)
Article 36: Force majeure
Article 37: Disclaimer for Acts of an
Instructed Party
Article 38: Transferable Credits
Article 39: Assignment of Proceeds

112